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allie kitkat
on Nov 06, 2024

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Roger's Meat Market is a chain of retail stores that limits its sales to fresh-cut meats. The stores have been very profitable in northern cities. However, when two stores were opened in the south, both lost money and had to be closed. Roger, the owner, has now concluded that no southern-based store should be opened as it would not be profitable. Which one of the following applies to Roger?

A) Confirmation bias.
B) Endowment effect.
C) Money illusion.
D) Affect heuristic.
E) Representativeness heuristic.

Representativeness Heuristic

A cognitive shortcut used in decision-making, where the likelihood of an event is judged by how much it resembles existing stereotypes.

Affect Heuristic

The reliance on instinct instead of analysis in making decisions.

Endowment Effect

A cognitive bias in which individuals value an owned object higher than its market value, simply because they own it.

  • Discover and interpret various predispositions and heuristic processes.
  • Investigate the role of exaggerated self-assurance and other distortions on decision-making in management.
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prishita sarnaNov 07, 2024
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